MiFIR

MiFIR, or Markets in Financial Instruments Regulation, is the European Union regulation (EU) 600/2014 that forms the core of the EU’s reform of financial markets under MiFID II. Adopted in 2014, it works together with the MiFID II directive to create harmonized rules for trading, transparency, and market structure across the EU.

The regulation applies to financial instruments admitted to trading on EU trading venues or traded on those venues, including shares, bonds, derivatives, emission allowances, and other structured products. Its aim is to promote market integrity, improve investor protection, and ensure a level playing field across borders by standardizing how trades are conducted and disclosed, and by defining the venues and mechanisms through which trading can occur.

Key features of MiFIR include a comprehensive framework for pre-trade and post-trade transparency. This requires timely publication of price and volume information for trades on eligible venues, with certain waivers and exemptions. It also establishes categories of trading venues—regulated markets, multilateral trading facilities (MTFs), and organised trading facilities (OTFs) for non-equity instruments—and imposes a trading obligation for certain instruments to be executed on one of these venues. In addition, MiFIR sets rules on access to trading venues and aims to ensure non-discriminatory, fair access to market data and infrastructure.

Compliance and oversight are shared between the European Securities and Markets Authority (ESMA) and national competent authorities. MiFIR also introduces the concept of a consolidated post-trade tape to aggregate trade data across venues, supporting price formation and market surveillance. The regulation operates in tandem with MiFID II to enhance transparency, competition, and investor protection within the EU financial markets.